ABC Radio Sale Appears Closer - Radio World

ABC Radio Sale Appears Closer

ABC Radio Sale Appears Closer
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The sale of ABC Radio and its 72 stations is down to three groups, according to the Financial Times.
It quoted sources saying the months of negotiations and bidding have produced three finalists: Entercom Communications, Cumulus Radio (recent buyer of Susquehanna) and private equity group Kohlberg Kravis Roberts. The deal is expected to cost between $2 billion and $3 billion.
The pending Disney deal "comes at a time when valuations in the radio sector are at a much lower level than when most of the mergers and acquisitions activity occured in the early 1990s," the Financial Times reported. "However, the relatively high valuation of $1.2 billion obtained by Susquehanna in its sale to Cumulus encouraged Disney to proceed, in the hope of clinching a deal before the end of the year, said industry insiders."

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